Ethereum Set To Explode According To Market Dominance, Crypto Analyst
Crypto Analyst Nicholas Merten recently said in a video analysis session on YouTube that Ethereum’s price is poised to explode. Merten pointed out that price analysis really isn’t the reason that the number 2 cryptocurrency is set to explode, but what the market dominance shows that actually shows this. This shows through when the cryptocurrency market dominance is measured.
Merten believes that current market trends are very similar to what was done in the market back in 2017. Going back to when the last bull market had started in 2017. Before fizzling out and turning into a full-blown bear market by the time the middle of the year 2018 rolled around. The current trends of higher lows that have been seen so far in the market continue to mirror the cycle of 2015 when Ethereum had started to show momentum in the market.
Related Reading | How Much Is Your Love Worth? Polish Influencer Sells “Love” As NFT
This momentum had continued on for Ethereum straight through 2016 and all the way into 2017, leading up to the bull cycle that had begun in November 2017. Ethereum has so far maintained momentum despite a variety of competition in the market. It continues to hold market dominance around the 19% to 20% range.
“This showcases that this is a critical metric we need to watch for because we’re testing around that 20% range. One-fifth of the market share going towards Ethereum,” Merten said.
The Key To Another Shoot-Up
Market dominance continues to be a good way to gauge how the price of a coin is going to do in the crypto market. Number 1 cryptocurrency Bitcoin, continues to maintain the majority market share, and as such, continues to be the most valuable coin in the market.
But with Ethereum picking up more market share, there is no doubt that ETH is becoming more of a valuable asset. At one point, Etheruem had garnered as much as 32% market share. Showing how fast the cryptocurrency is gaining value ahead of other coins in the market.
Related Reading | Why Another Wave Up For Altcoins Is Probable According To BTC Dominance
Also relevant is the fact that Ethereum is much younger crypto than Bitcoin. Recently celebrating its fifth year anniversary, Ethereum has continued outperformed number 1 crypto Bitcoin. Despite the latter being twice as old in the market.
Continuing further, Merten said, “This showcases that this is a really critical metric we need to watch for. And that is a huge psychological level because once we broke through that range, we climbed all the way up here to 32% market dominance. An over 50% increase of previous ownership of market share.”
Ethereum Breaking From Bitcoin
Ethereum continues to see uptrends in the price following the close of last weekend. The coin so far seems to be dissociating from the price of bitcoin and charting its own course upwards. Continuing to rally while the price of bitcoin experienced dips following the latest rally.
ETH price continued to rally while BTC slowed down entering the new week | Source: ETHUSD on TradingView.com
As ETH continues to gain more market dominance, the asset is more likely to rally at its own pace as opposed to following the market trends of bitcoin. This would put Ethereum on love ground with the pioneer cryptocurrency if the value of ETH stops being reliant on the value of BTC.
The price of ETH is currently up 7.45% in the last 24 hours, to be trading at $2,678.06 according to CoinDesk.
Featured image from Forex Academy, chart from TradingView.com